Auto parts supplier Robert Bosch will be cutting 5,500 jobs across its operations, reports CBT News.

The bulk of cuts will be to Bosch’s cross-domain computing solutions division, with 3,500 positions to be cut by 2027. Another 750 jobs will be eliminated at Bosch’s electric-motor plant in Hildesheim, Germany, by 2032, and another 1,300 from its steering division between 2027 and 2030.

Reasons for the cuts include overcapacity in the auto industry, as well as lackluster car sales and high competition.

“The auto sector has significant overcapacity,” Bosch described.

The news follows recent moves by suppliers such as Michelin and Schaeffler to close factories and cut jobs in Europe. Most recently, Swedish battery maker Northvolt has also filed for bankruptcy as it struggles with rapid growth.